Yeah, please report this as a bug. It directly contradicts the docs:
If you need quotes, you can just do this:
The story headline is "An Interactive 'Story'".
If you need an apostrophe, I’m not sure if there’s a workaround.
Edited to add: the example (“Summer of [’]69” by Buzz Aldrin) works, but the docs indicate that this substitution should work with all bibliographic descriptions which as you’ve found, it does not.